Financial Accomplishments: Financial Goals To Work Towards In Your 20s and 30s

Follow these 10 practical tips to reach financial goals in your 20s and 30s.

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No matter your age, money can be an overwhelming thing to manage. In your 20s, you finally get your first taste of financial freedom, and in your 30s, you might have some loftier financial priorities you want to work towards. 

When you’re young, it’s easy to overlook your finances and your plans for the future. After all, you really are just starting out and getting the hang of everything!

With that being said, there are quite a few financial steps you can take in your 20s and your 30s that can make a big difference in your financial situation down the road.

Let’s talk about a few of the goals you can work towards in your 20s and 30s to help you achieve financial success down the line.

6 Financial Goals To Work Towards In Your 20s

It’s never too early to start working towards financial goals—here’s what you can do in your 20s to get a head start.

Your 20s are said to be some of the most exciting years of your life. It’s a time to make mistakes and a time to learn. You will have so many new experiences in your 20s, and some of those new experiences can be difficult to navigate—especially when it comes to finances. 

As you adjust to this new level of financial independence, you must work towards some financial goals in your 20s to get a better handle on your finances. Let’s talk about a few financial goals to work towards in your 20s.

This post is sponsored and affiliate links may be present. All opinions are my own.

1. Become Financially Independent

Your 20s are more than likely the first time you live on your own and the first time you have to get your finances in order. If you’ve never done this before, it can be difficult to know where to start. Here’s how you can work towards financial independence:

• Set up your own bank account if you don’t already have one.
• Create a budget to give you a framework for how to spend your money.
• Establish a plan to pay off any student loans.
• Look into strategies to build your credit.

While these are all big steps you need to take, start making progress towards getting all of your necessary accounts set up and a game plan of how you should be spending your money.

2. Learn To Live Below Your Means

As you enter your 20s, your income is bound to change a lot. With this huge change in your income, it’s challenging to know how to adjust. In your 20s, you should learn how to live below your means so that you can start making progress toward your larger financial goals. 

Living below your means starts with understanding your spending habits and making a budget you can follow. Look at all of your bank statements and categorize your spending to understand where you spend most of your money.

Create a budget by figuring out your monthly income and identifying your expenses, which should include both your financial needs and wants. Research budgeting styles and choose one that works best for you.

With a budget in place and a better understanding of how you are spending your money, look for places where you can cut back on your spending and how you can instead contribute that money toward your financial goals.

3. Develop a Retirement Plan

As you start to enter the workforce, retirement is likely at the back of your mind. While you don’t need to have a fully-fledged retirement plan created off the bat, it’s best to have some type of idea in place that you can start working toward. 

If you work with an employer who has a 401(k) benefit, be sure you start an account as soon as possible. Automate your contributions, and take advantage of any employer-matching contributions. 

If you don’t have access to this type of account, consider your other options, like IRA accounts. You’ll have a couple of different options with these alternative retirement accounts, so do your research to find an account that works for your needs. 

The best way to make the most of your retirement contributions is to start early. This way, interest will work in your favor to make the most of your contributions to help you save for retirement down the road.

4. Start An Emergency Fund

No matter your age, you should have some type of emergency fund established. The point of an emergency fund is to have money set aside that you only touch if it’s absolutely necessary. 

You should have between 3-6 months’ worth of expenses saved in an emergency fund. Choose a high-yield savings account and automate contributions monthly until you have enough money saved up in your account.

5. Get A Life Insurance Plan

Many people in their 20s often look past a life insurance policy. Because life insurance is most commonly associated with families, many single people assume they don’t need one.  In reality, though, if you have any large outstanding debts or plan to have a family in the future, a life insurance policy is a good thing to have.

Your 20s are actually the best time to get a low-cost life insurance policy, too. Life insurance companies consider both your age and your health when applying for a life insurance policy. So, the younger and healthier you are, the less “risk” you pose to the life insurance company. Therefore, your monthly premium will be much lower.

It’s easier than ever to get a life insurance policy. Many companies have started offering an accelerated life insurance policy. All you have to do is fill out your personal and health information on the application and once it’s submitted, you can find out almost instantly if you are approved for a policy. 

6. Get Health Insurance

If you’re lucky enough to stay on your parent’s health insurance, you have until the age of 26 to find your own policy. This gives you a lot of time to understand what you need from your coverage and how to find it. 

If your employer offers health insurance as an employee benefit, this might be your best option. Otherwise, you will have to explore your options through the Health Insurance Marketplace.

Health insurance is confusing to navigate, so consider the following when looking for a plan:

• Your health 
• Premiums and deductibles
• Copays
• Provider networks
• Prescription coverage
• Vision and dental options

4 Financial Goals To Work Towards In Your 30s

Make adjustments to your finances to fit your financial plans in your 30s.

When you enter your 30s, you’ll have a lot more experience with finances. Where your 20s are a time to make mistakes, your 30s are the time to learn from those mistakes. In your 30s, too, your financial priorities may change a bit. Let’s talk about some of the financial goals you should work towards in your 30s.

1. Pay Off Non-Mortgage Debt

Most people enter their 30s with a bit of debt, whether that be from student loans, credit cards, or any other reason you may need to borrow. Your 30s will likely bring about other large financial decisions, like buying a house, getting married, or having a baby. 

Because you don’t want to carry a large amount of debt into your 40s and beyond, now is the time to start making a plan to be closer to a debt-free lifestyle. Let’s talk about some debt repayment strategies that can help you knock down some of your debts:

• Pay more than your monthly minimum – Your minimum payment may be all that’s needed to keep yourself afloat, but making larger payments can help you save lots on interest rates down the line.
• Prioritize your highest interest rates first – By prioritizing your debt with the highest interest rate first while still making regular payments on your other debts, you can be sure you are saving the most money possible on any associated interest rates.
• Consolidate your debts if needed – If you feel like you can’t get ahead on your debt repayment, you may want to consider consolidating your debt. You may have the option to consolidate multiple high-interest debts into one new loan with a lower interest rate.

While debt can feel overwhelming, making a plan to pay down your debt is the best way to take control of your finances.

2. Create A Will

Your 30s are the perfect time to create a will if you don’t already have one. If you die without a will, the distribution of your assets will be determined by the court. If you have children, it’s also up to the court to determine who will resume care of your kids if your partner isn’t able to take care of your children either. So, it’s best to have a will so that you can be sure all of your wishes can be followed.  

When creating a will, you can either work with an attorney or use software to help you create one on your own. Be sure you check the legal requirements your state has on any wills to ensure that your will is valid. 

3. Start a College Fund

If you have children by the time you are in your 30s or are planning to have children soon, now is a good time to start a college fund. The earlier you start, the more time you will have to grow your savings to financially support your child as they go to college. 

When starting a college savings fund, you will have a few different options:

• 529 Savings Plan – A state-sponsored savings plan designed to save money for a designated beneficiary with certain tax advantages.
• Education Savings Accounts – A tax-advantaged savings account that allows funds to be used for education expenses. 
• Custodial Accounts – An account opened by parents or guardians that can be transferred to a child when they reach a certain age. 

While these aren’t your only options to start a college fund for your child, these are among the most popular options. All have their own pros and cons, so do your research to figure out which will work best for you.

4. Increase Your Emergency Fund

By your 30s, your emergency fund needs will likely change. While what you have in your account may have worked for your needs then, that will likely change in your 30s. If you get married, have children, or experience any other financial changes, you will need to adjust your emergency fund to reflect your increased monthly expenses. 

Take a look at your emergency fund and see if it still fits your needs. If it doesn’t, make a plan to start contributing more money into your emergency fund until you and your family are comfortable with your savings.

It’s easy to get caught up in the day-to-day when it comes to your finances, but in your 20s and 30s, you should be thinking about the big picture. By committing to some smart financial goals, you can set yourself up for financial success early on and take charge of your financial future.

How have you approached financial planning in your home?
Do you teach your teens about key steps in the process to help them get started early?